ID Finance, the fintech company operating in Europe and Latin America, has closed its crowdfunding round after smashing the previous record for equity crowdfunding in Spain. The data science, credit scoring and digital finance company raised £4.95m from 1223 investors. It will now be using the funds to scale its marketing activities and drive growth in Spain, Brazil and Mexico.
ID Finance, which was founded by ex-bankers Boris Batin and Alexander Dunaev, uses machine learning and advanced data science techniques to provide competitive financial services to the underbanked and help customers build their credit profile.
The company has enjoyed rapid growth and now has over 3 million users, with over 40,000 new users joining each week. It is on track to double revenues this year to €90m – up from €13m in 2017 – and is targeting €267m+ of revenue by 2021. ID Finance was recently selected by Euronext, owner of the Paris Stock Exchange, or its pre-IPO program. The TechShare program is designed for technology companies and helps to prepare them for potential entry into the stock exchange.
“We’re delighted with the response and are closing the round a week early after more than doubling our target,” comments Boris Batin, CEO and co-founder at ID Finance. “We welcome our new investors on board and will keep them updated on progress as we execute our growth plans.”
Luke Lang, Co-founder and CMO at Crowdcube commented: “ID Finance’s phenomenal performance on Crowdcube shows the strength of its proposition for the market, in Spain and internationally. We’re proud to say it’s in Crowdcube’s Top 10 for fintech raise sizes. ID Finance has clearly struck a sweetspot with its community of investors and we look forward to seeing it go from strength to strength.”
ID Finance raised £4.95m from 1223 investors, equating to an average investment of £4,049. It is one of the largest crowdfunding rounds by a fintech company on Crowdcube.
The Latin America fintech market is attracting considerable interest. Those investing in fintech companies in the region include Goldman Sachs, Morgan Stanley, Victory Park Capital, Santander InnoVentures, Softbank and Tencent.
he success of ID Finance’s crowdfunding campaign comes following a strong quarter for fintech on Crowdcube – it recently reported that 38% of the £39m invested via its platform in the last quarter went to fintech startups. Curve (£5.3m), Chip (£3.9m) and Gohenry (£1.5m) were among the fintech fundraising leaders on Crowdcube in the three months to the end of September.
The Latam fintech opportunity
- According to the World Bank 61% of Mexico’s population is excluded from the traditional banking system, while 40% of Brazil’s 207m population are underbanked.
- Brazil has an estimated revenue pool of $24 billion for fintech companies over the next 10 years, with payments, lending and personal finance the most promising segments according to Goldman Sachs.
- Finnovista, a fintech startup accelerator, has predicted that fintechs could take up to 30 per cent of the Mexican banking market over the next decade.